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Session B-1 Business Analysis Basic – SWOT and 4C

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Origin: SWOT and 4C come from issue trees and logic thinking mindset

Source: Wikipedia, Powerful Problem Solving.com

An issue tree is a graphical breakdown of your key question.

It has 3 basic rules:

Answer Why or How questions

Progress from the key question to analysis as they move to

the right or down

Insightful breakdown with MECE branches

ISSUE TREE

SWOT

4C

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Example: an issue tree helps to capture all potential answers to the key question

How can B&H build itself as a high-end suit?

Offering high quality suits

Adding prestige to the brand

Providing an exceptional shopping experience

Using an attractive cut

Using only excellent fabric

Using a high-quality assembly

Establishing a brand that its target market wants

Using aspirational vending points

Employing qualified sales agents

Offering instant alterations

Offering complementary services

Offering payment options

Using a cut that suits each customer’s physique

Striking the right balance of ‘in-fashion’ vs. ‘timeless style’

Using only the finest wool

Using appropriate patterns

Using appropriate stitching techniques

Using only first quality thread

Associating it with other famous people

Associating it with other famous brands

Using brand-exclusive shops

Using prestigious department stores

Source: Powerful Problem Solving.com

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SWOT: Introduction

Source: Wikipedia

StrengthsResources and

capabilities that can be

used to develop a

competitive advantage

WeaknessesHindrances to develop

a competitive

advantage; often,

inversions of the

strengths

OpportunitiesAreas open for profit

and growth

ThreatsChanges in the business

environment that

potentially jeopardize a

company’s profitability

or survival

Internal Assessment

External Assessment

HISTORY

Albert S. Humphrey (1926-2005) devised the

SWOT analysis technique while working for the

Stanford Research Institute about

organizational management and cultural

change

DESCRIPTIONS

SWOT analysis is a structured planning method

used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats involved in a project

or in a business venture

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SWOT: Implications

SWOT helps to evaluate and improve a company’s competitive positioning against anticipated market movements

Implications

The relations between different categories provide

insights to improve company’s competitive position

Leverage

Opportunities that fit well with the company’s strengths

Constraints

Weaknesses that hinder the company’s ability to capitalize on

opportunities

Vulnerability

Strengths that can be used to overcome threats

Problem

Threats that attack the company’s weaknesses

Strengths Weaknesses

Opportunities Threats

Internal Assessment

External Assessment

Leverage Constraints Vulnerability Problem

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4C: Introduction

4C is a marketing mix to determine a product or brand’s offering, and there are two versions, one is Customer, Cost, Communication, Convenience, and another is Commodity, Cost, Communication, Channel

Commodity

Cost

Communication

Channel

Customer

Cost

Convenience

Communication

4C Marketing Mix

Version 1 Version 2

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4C: Implications

The following example of Tata Nano car is a good example of how to use 4C to determine a product and it’s brand offering.

Source: Too Good To Fail , Booz & Company Strategy + Business issue 58, spring 2010; Nano website

Customer

Cost

Convenience

Communication

An affordable small family car for Indians

Normal Indian families who need a car

Ideal price level of an affordable family car should be about $2,500

“

”

Nano merchandise online store

Nano: Art in Motion Nano Short Films on Youtube Nano Student of the Year

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Agenda

Key Questions

• Origin: Issue Tree

• Introduction

• Implications

Case study, Take-away and Homework

• Case Study

• Key take-away

• Homework

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Case Study: Starbucks (1/2)

Strengths

• Global coffee brand with fine products and services

• Ethical value and commitment to the environment and community

• Almost 17,000 stores in 49 countries

Opportunities

• New markets for coffee are emerging

• Co-brand with other manufacturers of food and drink, and brand franchising to manufacturers of goods and services

Threats

• Industry competitors and copycat brands

• Rises in the cost of coffee and dairy products

Weaknesses

• New product development and innovation may falter over time

• Highly dependent on the retail of coffee, which could make it slow to diversify into other sectors

SO Strategy

• Create a portfolio with emerging markets to spread business risk

• Localize by co-branding and franchising

WO Strategy

• Develop products that align with local culture and consumer behaviors

• Expand to sectors relative to retail and consumer goods

ST Strategy

• Partner with local suppliers of raw materials and semi-manufactures

• Speed up innovation in both products and service

WT Strategy

• Standardize product/service launch procedure

• Expand in emerging markets and partner with local suppliers

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Case Study: Starbucks (2/2)

Customer Cost Convenience Communication

Not only a cup of coffee,

but an experience to

represent specific needs

of each community it

locates

Priced higher due to

perceived upscale image

attached to its brand

Increase customer loyalty

and viscosity (cost to

change coffee brand)

Any neighborhood with

high traffic and in-store

of shopping malls

Create multiple channels

to find information

Multi-channel interact

with customers, especially

by Internet and apps

Communicate with

customers by culture-

based product innovation

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Key take-away from this Session

SWOT and 4C are very basic but important tools and mindset in understanding and analyzing

business scenarios

The goal of using these tools is not to find facts, but to generate insights and solutions like ‘So

what?’ and ‘Then?’

What’s important particularly is they can also be used in analyzing your own S.W.O.T when

considering your career path or anything during a crossroad in your life

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Homework: analysis of potential competitors of Better Life+ Group

Goal To better understand our competitor and each market that Better Life+ is planning to compete

Content Use SWOT and 4C to analyze one competitor of Better Life+ except cafe industry (we’ve done

that by Starbucks, right?)

Due day Session 4